Osun didn’t collect a dime from April allocation, over bogus debt owed FG

​Osun State Government did not collect any amount from the federation account, as the state’s allocation of about N2.03 billion from the federal revenue was even insufficient to offset its total debt to the federal government of about N2.391 billion.

Governor Rauf Aregbesola of Osun StateThe deduction from Osun was part of the N32 billion deducted by the federal government from states as repayment for bailout funds and other loans extended to the affected states and the federal government.

At the end of the Federation Accounts Allocation Committee (FAAC) meeting for April 2016, the state went home empty handed. It still, however, owes the federal government about N361 million which will be deducted from subsequent months.

Apart from Osun, other states that had huge deductions by the federal government include Bayelsa, Cross River, and Ogun.

Bayelsa had N3.207 billion, 66.7 per cent, deducted from N4.812 billion allocated to it in April.

Seven states – Akwa Ibom, Anambra, Jigawa, Kogi, Lagos, Rivers, and Yobe – along with the Federal Capital Territory did not have deductions, as they did not collect the bail-out funds used for the deduction.

Apart from bail-out funds, which took about N3.078 billion from the affected states, loans the states are now repaying to the federal government include debts on Asset Management Corporation of Nigeria (AMCON) loans, commercial agricultural credit scheme, bond issuance programme, obligations to contractors, and deduction from excess crude account.

Other deductions include refund/payment arrears of derivation, foreign loans, special intervention/flood management projects, the national FADAMA project and reconstruction of commercial bank loans into FGN bonds.

About Me:

So True Naija is designed and managed by Lawal Azeez Olayinka. Azeez is a creative writer, social media marketer, Network and System Administrator. Need me for something relevant or probably want to make an enquiry, feel free to mail me on: Olayinkalawal15@gmail.com